Macroeconomic and Financial Situation of Nepal [Latest Data]

Nepal Rastra Bank has published a report of the current macroeconomic and financial situation of Nepal. It is based on the annual data of the year 2018/19. The report shows a deficit in balance of payment of Rs. 67.40 billion. The growth rate in GDP is estimated at 7.1 percent. Likewise, inflation stood at 4.6 percent.

The table below shows the macroeconomic and financial situation of Nepal based on major indicators.

Major Macroeconomic and Financial Indicators of Nepal, 2018/19

Indicators

Value/Change

GDP Growth Rate

7.1 percent

Inflation

4.6 percent

Growth in Import

13.9 percent

Growth in Export

19.4 percent

Growth in Remittance

16.5 percent

Balance of Payment

67.40 billion (Deficit)

Growth of Broad Money (M2)

15.80 percent

Gross Foreign Exchange Reserve

Rs. 1038.92 billion

Growth in Deposits at BFIs

18 percent

Growth in Bank Credit

19.4 percent

Total Deposits at BFIs

Rs. 3235 billion

Total Credit by BFIs

Rs. 2866 billion

Contribution of different sectors in the GDP

The share of Agriculture in the GDP stands at 27 percent as of 2018/19. Similarly, the service sector remains the highest contributor to the GDP of Nepal. Until the year 2018/19, service sector occupies 57.80 percent share in the GDP. Likewise, the industrial sector has 15.20 percent share in the GDP.

Sector

Share in GDP* (in %)

Agriculture

27

Industry

15.2

Services

57.8

*Preliminary Estimation

Number of Banks & Financial Institutions and their branches

As of Mid-July 2019, the number of banks & financial institutions has increased to 171 from 151 a year ago. The number of commercial banks remains constant at 28. The development and finance companies have declined in number. However, the microfinance institutions have increased from 65 to 90 in a period of the year.

The total branches of BFIs have surged from 6,651 to 8,686 as of Mid-July 2019.

Presence of Commercial Banks at Local Levels

Commercial Banks have reached 735 local levels as of Mid-July 2019. In the previous year, the number of local levels penetrated by commercial bank branches stood at 631. Out of a total of 753 local levels, still, 18 are void of the banking services.